Wrapped Mortgages

Question: Given the first and second mortgages are assumable: may they be wrapped into one contract to purchase or should they be in severalty?

Answer: Your question is whether two assumable mortgages can be wrapped together or must they be wrapped separately. The answer is either way. However, if a wrap note includes the unpaid balances of two existing independent mortgages, should one of them be paid off or modified before the other, the wrap note must be credited accordingly or likewise modified. How this occurs depends upon how the wrap documents are drafted. Before you decide to wrap two underlying notes together, I suggest you think through all possible payment scenarios.